Municipal Finance and Capacity Building (MFCB) Programme
Programme Status
Last Update: April 2, 2023 Time elapsed: 105%
Start Date: 1 Feb 2019 Completion date: 31 January 2023 (Extended to 31 Jan 2024)
Total Activities: 49 Completed Activities: 20 (Process=11; Task=9)
Output level Progress status
A. Physical Progress
| Progress Status | Previous Progress % | Current Progress % | Completed Activities |
| Output1: Enhanced capacity of municipalities to develop/ update long term strategic plan | 48 | 56 | 1. Inception Workshop (1.1.1)
2. Training and preparation of Medium Term Expenditure framework (Plan) for the municipality (1.1.5) 3. Prepare Revenue Improvement Action Plan (RIAP)- 1.1.7 4. Procurement and Contract Management Training (1.1.8) 5. Conduct seminars/workshops for advocating climate resilient and sustainable urban infrastructures (1.1.12) 6. Prepare ICT based Guidelines and procedure document for IPT/Business Tax and House Rent Tax (1.1.10) 7. Organize workshops to prepare civic education materials on disaster risk reduction for CBOs (1.1.13) |
| Output2: Enhanced Capacity of municipalities to develop investment pipeline for improved urban infrastructure and services | 29 | 33 | 1. Conduct pre-feasibility study for potential investments (2.1.2)
|
| Output3: Enhanced Capacity of municipalities to develop investment pipeline for improved urban infrastructure and services | 65 | 65 | 1. Training on Participatory planning and budgeting process (3.1.1)
2. Support municipalities to prepare communication strategy for citizen engagement and public accountability in municipal services and taxation (3.2.1) 3. Prepare common Grievance handling policy and operation manual for municipality (3.2.4) |
| Output4: Enhanced Capacity of municipalities to develop investment pipeline for improved urban infrastructure and services | 46 | 49 | 1. Conduct Study on gap analysis between best practices of other relevant municipal development banks and TDF (4.1.2)
2. Strengthen database and M/E system of TDF (4.1.14) 3. Strengthen TDF’s Appraisal System (4.1.15) 4. Strengthen database and M/E system of TDF (4.4.4) 5. Support for preparation of Municipal Investment Facility guidelines including revision of existing common loan and grants policy (4.2.1) 6. Develop loan recovery policy and guidelines for TDF (4.2.2) 7. Develop Potential Impact Investment Concept Notes (related to climate resilient urban infrastructure) for implementation (4.2.4) 8. Develop PPP financing policy, manual/guidelines for TDF (4.3.2) 9. Conduct Impact Assessment of sector wise projects supported by TDF (Water Supply, Bus Park and Commercial Complex) including TDF’s contribution to the national economy (4.4) |
| Average Physical progress, % as of January 2023 | 47 | 51 |
MFCB Activities Progress Status
| Ref | Description | Implementation Status | Previous Progress | Current Progress | Plan |
| 1 | Output1: Enhanced capacity of municipalities to develop/ update long term strategic plan | ||||
| 1.1 | Prepare long term strategic plans | ||||
| 1.1.1 | Inception workshop | Complete | 100 | 100 | |
| 1.1.2 | Support for preparation and review of municipal Strategic Plan and Profiling | 9-IUDPs with projects and 9-DEDs reviewed; extracted and recommended 7 bankable projects | 60 | 60 | Review and report findings- from more 8 IUDPs |
| 1.1.3 | Support for preparation of common LED Strategy for municipalities | Document complete for procurement-ToR complete | 5 | 5 | |
| 1.1.4 | Municipal Financing Strategy Developed | Inception report received | 15 | 25 | Sign contract |
| 1.1.5 | Training and Preparation of Medium Term Expenditure Plan for the Municipality | MTEP final plan submitted | 100 | 100 | |
| 1.1.6 | Training and Preparation of Capital Investment Plan and Asset Management Plan | Inception report received | 15 | 25 | Finalize |
| 1.1.7 | Prepare Revenue Improvement Action Plan (RIAP) | Complete | 100 | 100 | |
| 1.1.8 | Procurement and Contract Management Training | Complete | 100 | 100 | |
| 1.1.9 | Support Preparation of Procurement Plans | 0 | 0 | Plan and expedite | |
| 1.1.10 | Prepare ICT based Guidelines and procedure document for IPT/Business Tax and House Rent Tax | Complete | 55 | 100 | Follow up consultants |
| 1.1.11 | Introduce e-building permit system | ||||
| 1.1.12 | Conduct seminars/workshops for advocating climate resilient and sustainable urban infrastructures | Complete | 100 | 100 | |
| 1.1.13 | Organize workshops to prepare civic education materials on disaster risk reduction for CBOs | Complete | 100 | 100 | |
| 1.2 | Initiate Piloting for Strengthening ICT-based OSR and Service delivery (in 4 pilot municipalities) | ||||
| 1.2.1 | Support Selected pilot municipalities in automation of financial reporting including expenditure tracking system | Consultant mobilized | 5 | 25 | |
| 1.2.2 | Support pilot municipalities in designing and implementing street addressing system and house numbering system | Final report review process | 55 | 90 | Follow up consultants |
| 1.2.3 | Support to establish database of key taxes and service delivery in selected pilot municipalities (merged with 1.2.5) | Consultant mobilized | 15 | 25 | |
| 1.2.4 | Introduce e-building permit system | Consultant mobilized | 15 | 20 | |
| 1.2.5 | Support ICT-based municipal service delivery (merged with 1.2.3) | Consultant mobilized | 15 | 25 | Issue RFP |
| 1.2.6 | Conduct advanced ICT Training to key officials of selected pilot municipalities for impementation of integration of rervenue and service delivery | Concept Note prepared: Training is related to 1.2.3 & 1.2.5 | 5 | 5 | Finalize concept for the training |
| 48 | 56 | ||||
| 2 | Output2: Enhanced Capacity of municipalities to develop investment pipeline for improved urban infrastructure and services | ||||
| 2.1 | Support Project Development | ||||
| 2.1.1 | Training and support on project development, including checklist, screening and prioritization of potential projects | Concept note drafted | 15 | 15 | related to strengthen TDF appraisal system- (4.1.5) |
| 2.1.2 | Conduct pre-feasibility study for potential investments | 16 projects have been selected for DPR study | 100 | 100 | |
| 2.1.3 | Prepare Detailed Project Reports for bankable investment projects | Consultant mobilized | 15 | 25 | |
| 2.1.4 | Support Design and Finance for urban regeneration including land development | Consultant mobilized | 15 | 25 | |
| 2.1.5 | Develop feasibility/DPR project pipeline for Smart Water Grid (SWG) | Preliminary discussion held, waiting for concept note | 0 | 0 | Coordinate with the team-Municipality, water supply board |
| 29 | 33 | ||||
| 3 | Output3: Strengthened public accountability and citizens participation through improved expenditure tracking, management systems and citizen engagement processes of municipalities | ||||
| 3.1 | Conduct Training and awareness raising on participatory planning | ||||
| 3.1.1 | Training on Participatory planning and budgeting process | Complete | 100 | 100 | |
| 3.1.2 | Workshop on GESI mainstreaming strategy in operation of programme and projects at local level | ||||
| 3.2 | Develop local dialogue and communication strategy for citizen engagement and public accountability in municipal services and taxation | ||||
| 3.2.1 | Support municipalities to prepare communication strategy for citizen engagement and public accountability in municipal services and taxation | Complete | 100 | 100 | |
| 3.2.3 | Support to ensure public hearing are conducted | Public hearing-Notes collected from concerned municipalities (f.y. 2078/79); Checklist developed for fy 2079/80 | 80 | 80 | Support at least one public hearing in the municipality |
| 3.2.2 | Support mechanism to disclose key information in the municipality website in accordance with Right to Information Act | Training module completed | 10 | 10 | study 15 municipal webite |
| 3.2.4 | Prepare common Grievance handling policy and operation manual for municipality | Complete | 100 | 100 | |
| 3.2.5 | Support CSO capacity for demand of services | 0 | 0 | Prepare concept note and organize one day training to municipalities | |
| 65.00 | 65.00 | ||||
| 4 | Output4: Enhanced capacity of TDF for establishing and operationalizing investment facility mechanisms (Municipal Investment Facility and Impact Investment Facility), including PPP projects | ||||
| 4.1 | Support actions on non-grant financing products | ||||
| 4.1.1 | Conduct Credit Rating Assessment of TDF | ToR Finalized | 20 | 15 | |
| 4.1.2 | Conduct Study on gap analysis between best practices of other relevant municipal development banks and TDF | Final report received | 100 | 100 | |
| 4.1.3 | Strengthen TDF’s online municipal project finance application system | Detailed analysis of finance application system of TDF with recommendation completed | 15 | 15 | |
| 4.1.4 | Strengthen database and M/E system of TDF | System developed; tested and implemented | 100 | 100 | |
| 4.1.5 | Preparation of TDF’s Appraisal Guidelines | Final report received | 100 | 100 | |
| 4.1.6 | Preparation of DPR of model green building | Preliminary demo presented; inception report reviewed; draft report submitted | 55 | 55 | Follow up consultant |
| 4.1.7 | Provincial workshop conducted in 7 provinces on TDF’s Business Products, Services and application procedures tec. | Completed in 7 provinces; supplementary workhop planned to conduct in March and April | 71 | 100 | |
| 4.1.8 | Support the preparatory works for bond issuance strategy and guidelines | 0 | 0 | Sr. Banker will work out while on board | |
| 4.1.9 | Conduct Market Study for bond issuance | 0 | 0 | Sr. Banker will work out while on board | |
| 4.1.10 | Preparation of TDF Appraisal System based on Appraisal Manual | ||||
| 4.2 | Support Municipal Investment and Impact Investment Facility Systems and Procedures | ||||
| 4.2.1 | Support for preparation of Municipal Investment Facility guidelines including revision of existing common loan and grants policy (Infrastructure Financing Guideline 01) | Complete | 100 | 100 | |
| 4.2.2 | Develop loan recovery policy and guidelines for TDF | Complete | 100 | 100 | |
| 4.2.3 | Develop Impact Investment Strategy and Operation systems | Not started | 0 | 0 | Draft ToR |
| 4.2.4 | Develop Potential Impact Investment Concept Notes (related to climate resilient urban infrastructure) for implementation | Complete | 100 | 100 | |
| 4.2.5 | Develop feasibility studies and DPRs for climate resilient urban infrastructure | EoI evaluation complete | 15 | 15 | Proceed for RFP with revisiting ToR |
| 4.2.6 | Support advocacy and policy intervention on various related thematic areas including energy efficiency investments | Not started | 0 | 0 | NEEP regular program-energy audit |
| 4.2.7 | Conduct workshops and conferences on lessons learned from the MFCB pertaining to municipal finance | 0 | 0 | Draft concept note, and discussion models | |
| 4.2.8 | Conduct Municipal Infrastructure Investment Summit | ||||
| 4.3 | Support TDF capacity to finance PPP projects | ||||
| 4.3.1 | Conduct workshop and initiation of PPP for high impact projects | Workshop preparation completed | 0 | 20 | Conduct PPP initiation of PPP for high impact projects |
| 4.3.2 | Develop PPP financing policy, manual/guidelines for TDF | Complete | 100 | 100 | |
| 4.4 | Conduct Impact Assessment of sector wise projects supported by TDF (Water Supply, Bus Park and Commercial Complex) including TDF’s contribution to the national economy | Final Report received | 100 | 100 | |
| 4.5 | Conduct Study on TDF’s role, opportunities and challenges in the changed federal context | 0 | 0 | Draft ToR | |
| 4.6 | Conduct Twinning Programme with an International Agency working on municipal infrastructure financing institution, such as Netherlands Municipal Bank (BNG) and Exposure Visits 18 personnel for Capacity Development | 0 | 0 | ||
B. Financial Progress
MFCB Program Expenditure Status (Contract No: CSO-LA/208/402-797)
Reporting period: January, 2023
| Budget Heading | Budget (NPR) |
Expense-Year 1 | Expense-Year 2 | Expense-Year 3 | Expense-Year 4 | Total Cost ( NPR )1 |
Balance Budget |
| 1. Human Resources | 24,869,794 | – | – | 3,462,852 | 3,738,544 | 7,201,396 | 17,668,398 |
| 2. Travel | 6,478,657 | – | – | 275,264 | 1,109,280 | 1,384,544 | 5,094,113 |
| 3. Equipment and supplies | 48,528,892 | 7,637,487 | 2,460,050 | 616,344 | – | 10,713,881 | 37,815,011 |
| 4. Local office | 7,142,156 | – | 333,276 | 1,499,348 | 1,972,855 | 3,805,479 | 3,336,677 |
| 5. Other costs, services | 119,606,639 | 1,308,279 | 212,468 | 5,590,688 | 6,922,126 | 14,033,562 | 105,573,077 |
| 6. Other | 57,548,633 | – | 1,156,434 | 10,298,247 | 18,355,707 | 29,810,388 | 27,738,245 |
| Total | 264,174,771 | 8,945,765 | 4,162,228 | 21,742,744 | 32,098,512 | 66,949,250 | 197,225,522 |
Output wise financial progress
| Output wise budget | Budget (NPR) |
Expense-Year 1 | Expense-Year 2 | Expense-Year 3 | Expense-Year 4 | Total Cost ( NPR )1 |
| Output 1 | 53,375,256 | 997,133 | – | 65,900 | 3,342,871 | 4,405,904 |
| Output 2 | 48,000,000 | – | – | – | – | |
| Output 3 | 2,556,989 | – | – | – | 1,239,531 | 1,239,531 |
| Output 4 | 45,689,600 | – | – | 5,193,254 | 1,831,512 | 7,024,765 |
| Total | 149,621,845 | 997,133 | – | 5,259,154 | 6,413,913 | 12,670,200 |
C. Next Month Plan
Major task and process oriented activities have been planned for the next month:
Output1: (1.1.2) Review of 4 Strategic Plans and extract bankable projects for TDF; collect IUDPs at least 6 from DUDBC
Output2: Complete procurement process of task oriented activities
Follow up consultants for timely completion of tasks and ensure output quality
Output3: Complete procurement process of task oriented activities
Follow up consultants for timely completion of tasks and ensure output quality
Output4: Complete procurement process of task oriented activities
Follow up consultants for timely completion of tasks and ensure output quality
Others: Finalize a programme implementation sharing workshop on status of MFB for newly elected municipal representatives
Follow up of ongoing contract packages of task oriented activities
D. Issues and Challenges
- The contract management for task oriented activities are significantly to be improved with duly follow up of contract administration
- To proceed time taking consulting tasks, for example, preparation of DPRs for bankable projects is still not expedited.
- Some major process oriented activities are substantially pending due to the absence of Experts, who were supposed to be hired.
- Recruitment of vacant Experts’ positions
